DJ Pendleton, executive director of the Texas Manufactured Housing Association, says on Oct. 1 the Consumer Financial Protection Bureau (CFPB) clarified the rules defining what is considered a mortgage loan originator and what is not. A retail employee can only provide general information about buying a manufactured home. A more detailed and comprehensive list of permissible activities is expected to be forthcoming. Industry’s efforts to convince the Bureau to alter the APR rate and points and fees caps to avoid the high cost “predatory loan” issue did not succeed. Although the CFPB has agreed to look into the issue further, it will not change the caps before the Jan. 2014 date. For his Industry in Focus report, click here. Mark Bowersox, Executive Director of the Indiana Manufactured Housing Association/Recreational Vehicle Indiana Council (IMHA-RVIC), also noting CFPB’s refusals of MHI’s requests, says it is crucial to contact your representatives in Congress to urge them to pass HR 1779, the “Preserving Access to Manufactured Housing Act.” For his It’s Now or Never article, click here. Both the Oklahoma Manufactured Housing Association (OMHA) and the Wisconsin Housing Alliance (WHA) warn that any lease to buy or other lending related activities could trigger enforcement action by the CFPB. Additionally, the Manufactured Housing Institute (MHI) Retailers Council says remove all the financing signs unless you are licensed, and don’t base a decision on common sense. Meanwhile, Oklahoma and Texas are collaborating on a free lenders seminar for those who sell manufactured homes, probably after the first of the year. MHProNews and ManufacturedHomeLivingNews publisher L. A. “Tony” Kovach offers a 3 Step Plan for Resident Engagement on HR 1779—click here.
(photo credit: Horizon Land Co.)